Deutsche Bank (DB - Get Report) has no intention of paying $14 billion to the U.S. to settle allegations of mis-selling of mortgage securities.

An amount that high could cripple one of the worst capitalized banks in Europe. In the European Banking Authority's 2016 stress test Deutsche Bank's fell within the top 10 most-stressed banks in the adverse scenario.

Germany's largest bank this morning confirmed it was in negotiations with the Department of Justice to settle the civil claims against the bank's issuance and underwriting of residential mortgage-backed securities between 2005 and 2007.

The bank also confirmed that the DoJ had proposed a settlement figure of $14 billion. This would be the largest ever fine for such claims and was much higher than had been expected.

"Deutsche Bank has no intent to settle these potential civil claims anywhere near the number cited. The negotiations are only just beginning," the bank said this morning. "The bank expects that they will lead to an outcome similar to those of peer banks which have settled at materially lower amounts."

Shares in the bank's U.S. listing fell as much as 7.4% in after-hours trading on Thursday when speculation of the large claim was first reported.

In Germany, the stock fell more than 6% in early Friday trading. The bank has lost 50% of its value in the last year.

In a note yesterday JP Morgan wrote that an agreement of more than $4 billion "would put questions around capital positions with the need to potentially build additional litigation reserves" if other claims arise.

The International Monetary Fund earlier this year deemed Deutsche Bank the "most important net contributor to systemic risks."